Question: DO IT! 5.2 (LO 2) On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $4,800,

DO IT! 5.2 (LO 2) On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $4,800, and the cost to Davis Company is $3,100. On October 8, Wang returns defective goods with a selling price of $650 and a fair value of $100. Record the transactions on the books of Wang Company.

a. Record transactions of purchasing company.

Assume information similar to that in DO IT! 5.2a. On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $4,800, and the cost to Davis Company is $3,100. On October 8, Wang returns defective goods with a selling price of $650 and a fair value of $100.

b. Record the transactions on the books of Davis Company.

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